Grant funding opportunity for regional industrial facilities decarbonisation activities

16 October 2024

The Powering the Regions Fund – Industrial Transformation Stream (ITS) is a Federal Government initiative administered by the Australian Renewable Energy Agency (ARENA). The program aims to support the reduction of industrial emissions at existing National Greenhouse Energy Reporting (NGER) industrial facilities in Regional Australia. Funding is deployed in a series of rounds, each supported by a set of focus areas.

Current focus areas of the grant (Round 1)

Round 1 has two focus areas:

1. Supporting the decarbonisation of process heat used in industrial processes
2. Off-road transport decarbonisation

Focus area 1 aims to replace fossil fuels with low-emission technologies in industrial heat generation, encouraging the adoption of solutions like electrification, energy efficiency, solar thermal, and renewable fuels (e.g., hydrogen, bioenergy) to achieve zero emissions process heat. ARENA provides funding for the installation of equipment such as electric boilers and heat pumps, the integration of enabling technologies like energy storage, and the development of innovative business models that overcome barriers to deploying low-emission heat technologies. Support for routine upgrades and non-renewable energy efficiency technologies is excluded. Minimum grant amounts are set at $300,000 for feasibility studies and $1,000,000 for pilot or deployment projects. 

Focus area 2 covers technologies such as fuel switching away from petroleum-based vehicles or locomotives related to industrial sites; the trial, integration and use of battery electric vehicles (BEVs), hydrogen fuel cell electric vehicles (FCEVs) and charging solutions; integration of innovative charging and refuelling solutions. Minimum grant amounts are set at $500,000 for feasibility studies or FEED and $2m for pilot, demonstration or deployment projects.

Focus Areas for Round 2 are expected to be announced prior to January 2025.

Example projects already funded

• $37.2 million to reduce ventilation methane emissions at Kestrel Coal in the Bowen Basin, Qld
• $28 million for a solar and battery storage system at Incitec Pivot Fertilisers in Phosphate Hill, Qld
• $9.8 million to deploy emissions capture technologies at the Dyno Nobel ammonium nitrate facility in the Bowen Basin, Qld
• $7.5 million to install a low emission waste gas incinerator at CSBP Limited’s sodium cyanide plant in Kwinana, WA
• $5.4 million for energy efficiency upgrades at the Boyne Aluminium Smelter in Gladstone, Qld
• $3 million for electrification at the Viva Energy Refinery in Geelong, Vic.

Need assistance?

For any help with discussions, to obtain more information, and assistance in grant applications, please contact Daniel Knox, R&D and Incentives Partner.